A Chinese herbal medicine for treating tumor comprises frankincense, myrrh, asarum, porcellio, azalea, strychnos alkaloids, scandent schefflera root, paniculate swallowwort, glabrous sarcandra herb, wooly datchmanspipe herb, unprocessed Radix Aconiti Kusnezoffii and unprocessed Semen Strychni which are added in the following proportion by weight part: 5-10 parts of frankincense, 5-10 parts of myrrh, 10 parts of asarum, 8-12 parts of porcellio, 1-3 pars of azalea, 1-2 parts of strychnos alkaloids, 50 parts of scandent schefflera root, 50 parts of paniculate swallowwort, 50 parts of glabrous sarcandra herb, 50 parts of wooly datchmanspipe herb, 10 parts of unprocessed Radix Aconiti Kusnezoffii and 8 parts of unprocessed Semen Strychni. The method for preparing the Chinese herbal medicine comprises the following steps: grinding frankincense, myrrh, asarum, porcellio, azalea, and strychnos alkaloids into powder; stewing scandent schefflera root, paniculate swallowwort, glabrous sarcandra herb, wooly datchmanspipe herb, unprocessed Radix Aconiti Kusnezoffii and unprocessed Semen Strychni into extract; and adding the medicinal powder into the stewed extract, stirring until uniformity appears, drying by using a heatable brick bed, grinding into 300 meshes of fine powder, and packaging with a capsule. The invention has the advantages that the medicine has no side effects, is not addictive, has no stimulative effects on digestive tract, and has the function of limiting tumor metastasis with low cost and easy production in large scale.